Energy plays a central role in shaping the U.S. economy, with imports and exports of oil, natural gas, and refined products influencing trade balances, industry growth, and geopolitical strategy. While the U.S. remains one of the world’s largest energy producers, it continues to import some energy products to meet domestic energy use demand.
Tariffs and trade policies directly impact the global energy trade, shaping costs, competitiveness, and diplomatic relations. For business owners, staying informed on this topic is key to strategic planning, especially as the U.S. navigates shifting trade dynamics.
The U.S. is a net exporter of energy, meaning it exports more than it imports. That said, the U.S. imports some energy, with imports of crude oil, natural gas, electricity, and uranium products helping meet domestic demands. These imports come from a variety of trading partners across the globe, including Canada, Mexico, Saudi Arabia, Iraq, and Colombia.
The United States is a major global energy provider. Its energy exports help balance the country’s trade deficit and fill gaps in international energy demands.
Crude oil is the primary energy export of the United States. As of 2024, exports of crude oil averaged 4.1 million barrels per day (b/d), a record high for the country according to the U.S. Energy Information Administration (EIA). Top destinations for U.S. crude oil products include China, South Korea, India, the Netherlands, and Germany.
Refined petroleum products like gasoline, diesel, and jet fuel are just as significant; they allow the U.S. to influence foreign markets and secure its place as an energy powerhouse. These products often find their way into transportation sectors where demand is constant.
Natural gas exports, particularly in the form of liquefied natural gas (LNG), have seen tremendous growth in recent years. In 2023, LNG exports made up approximately 26% of total U.S. energy exports. Key consumers include countries in both Europe and Asia. The fact that Ukraine recently stopped transporting Russian natural gas to Europe means that there will be an even stronger demand for domestic natural gas in European markets in the future. Sectors that benefit the most from these exports include power generation and manufacturing, as many view natural gas as a cleaner alternative to coal or oil.
The U.S. remains a major exporter of coal products despite domestic production cuts. In 2023, the U.S. exported about 100 million short tons of coal, with most being metallurgical coal used in steel production according to EIA. Major importers included India, Japan, and South Korea.
U.S. electricity exports serve as a critical resource for balancing electrical grids in neighboring countries. Most of this power flows to Canada and Mexico, ensuring these nations meet peak demand at lower costs.
The U.S. predominantly exports hydroelectric and natural gas-based electricity.These exports are especially beneficial in Mexico‘s burgeoning industrial zones and Canada‘s remote communities, which rely on consistent energy inflows.
Beyond major exports like oil and gas, the U.S. is also a key provider of niche energy products like liquified petroleum gas (LPG) to Brazil, Japan, and the Philippines and green energy equipment like wind turbine parts to countries like India, Germany, and China.
Trade policies, including tariffs, carry heavy implications for the flow of energy across borders. As the U.S. navigates its role in global energy trade, current and proposed tariff measures directly influence pricing, supply chains, and partnerships.
Tariffs on energy imports significantly alter the dynamics of U.S. energy trade. In 2025, the U.S. government introduced a 10% baseline tariff on all foreign-origin products, with targeted increases for select countries. This measure, aimed at addressing trade imbalances, impacts various energy imports such as crude oil, natural gas, and renewable components. For example, energy commodities like solar panels have faced higher import taxes, primarily targeting China, a major supplier of such commodities. These measures directly impact businesses relying on foreign sources of energy.
Key trading partners like Canada, however, benefit from exemptions or reduced tariffs due to long-standing bilateral agreements. This is important because Canada plays an important role in the U.S. energy trade. Tariff exemptions for Canadian energy, particularly hydroelectric power, help stabilize regional energy markets while minimizing additional costs for consumers.
Other nations have imposed their own reciprocal tariffs on the United States in response to the Trump administration’s tariffs. Some European countries, for example, have applied retaliatory tariffs on U.S. liquefied natural gas (LNG), making it less competitive in global markets compared to alternatives from other nations. .
This situation isn’t unique. In response to heightened tariffs on Chinese imports, China imposed increased levies on American oil. This measure restricts U.S. crude sales to one of its largest energy markets. The ripple effects are that. U.S. exporters can lose market share to competitors like Saudi Arabia, while drops in export revenues directly impact upstream oil and gas production.
Even in situations where energy sectors are partially shielded, disputes over tariffs can indirectly affect trade outcomes. For example, the 2025 U.S. tariff policies included carve-outs for oil and gas exports. However, lingering trade tensions have impacted confidence among key buyers, reducing demand for future contracts.
Overall, retaliatory trade measures also complicate global energy partnerships, leaving exporters struggling to secure long-term agreements. While large energy players may withstand these pressures, smaller producers often face financial constraints, draining sectoral innovations and local economies.
Energy consumption isn’t just a domestic concern for the United States. It’s a matter of national security and economic strategy. The interplay between imported energy, trade deficits, and global partnerships shapes how the U.S. navigates its role as both a major consumer and provider of energy resources.
The U.S. energy supply chain is deeply interconnected with global markets, creating both opportunities and vulnerabilities. While the U.S. is one of the top energy producers globally, it still relies on some energy imports to meet the demands of its industries and households.
Key imports that create energy dependencies include:
- Crude oil. Though U.S. domestic oil production has surged, the country still imports specific types of crude oil, particularly heavier grades that domestic refineries are optimized to process. For instance, over half of U.S. crude oil imports currently come from Canada, with additional supplies coming from Mexico and OPEC countries like Saudi Arabia. Dependence on foreign crude leaves the U.S. vulnerable to geopolitical disruptions in these regions, impacting fuel prices and energy security.
- Natural gas. Nearly all of the natural gas imported into the U.S. comes from Canada via pipeline systems, ensuring consistent supply during peak heating and cooling seasons. Any disruption could compromise this flow, destabilizing the market and causing price fluctuations.
- Uranium. The U.S. remains entirely dependent on imported uranium for its nuclear energy sector. Top suppliers, such as Canada and Australia, are politically stable. Any geopolitical shifts in mining regions, however, could disrupt supplies.
- Renewable energy components. The transition to greener energy sources has led to increased imports of renewable energy technology. This technology includes wind turbine equipment to solar panels, which the U.S. primarily sources from China. This dependence complicates the push for economic independence in critical energy industries.
Energy security is not only a technical matter. It’s a strategic priority. Policymakers and logistics experts are working to reduce vulnerabilities by diversifying suppliers and investing in strategic energy reserves. A stable supply chain for energy resources directly supports long-term economic growth and minimizes risks associated with reliance on foreign producers.
Energy exports are one of the few areas where the U.S. maintains a trade surplus, significantly contributing to reducing overall trade deficits. By leveraging its vast natural resources—including coal, petroleum, and LNG—the U.S. has positioned itself as a key energy supplier to global markets.
Efforts to further reduce the trade deficit through energy exports have historically prompted bilateral agreements aimed at easing trade barriers. Free trade deals with partners like Japan and South Korea, for example, have fostered stronger energy ties, ensuring smoother pathways for U.S. fossil fuels and renewable equipment.
Understanding the dynamics of U.S. energy imports and exports is more than just an economic exercise; it’s vital for strategic decision-making. The balance between imported energy resources like crude oil and developing export markets for natural gas and petroleum products underscores the interconnectedness of global trade and domestic policy.
Tariffs and trade policies add another layer of complexity, influencing costs, competitiveness, and international partnerships. For business owners and industry professionals, keeping up with these shifts is essential for navigating supply chains and adapting to market changes. Tariffs also introduce a high degree of uncertainty into energy market economics. The tariffs were introduced with the stroke of a pen – and they could just as easily be rolled back the same way. Additionally, tariffs aren’t rooted in fundamental or technical market drivers but are largely the result of political and policy decisions. Their duration remains uncertain, which introduces a high degree of market uncertainty and volatility.
Disclaimers: The geopolitical climate and U.S. tariff policies are constantly evolving. Information is correct at time of writing, but may change as the situation develops.